SALT LAKE CITY — Former Salt Lake City Mayor Rocky Anderson and other Salt Lake City residents are backing down from their efforts to create a referendum on the city's recent partnership agreement with Smith Entertainment Group over a district around a remodeled Delta Center.

Anderson, along with resident Catherine Lukes, who had tossed around the idea of creating a referendum on the issue before the Salt Lake City Council's vote on Tuesday, issued a statement on Friday saying they would not pursue a referendum after all.

They explained their decision was made after "many hours in recent conversations" with Smith Entertainment Group executive Mike Maughan, during which the two sides discussed cost-of-living, affordable housing, historic preservation and other key issues tied to the planned sports, entertainment, culture and convention district.

"(Smith Entertainment Group) has committed to alignment in the mission to meaningfully address these issues and create a stronger, more healthy and just city," Anderson and Lukes wrote in a joint statement, which Anderson posted to social media. "The agreement between (Smith) and Salt Lake City requires a 30-year lease in downtown, which means that (Smith) is deeply committed to ensuring long-term solutions to systemic issues facing Salt Lake City for decades to come."

Maughan acknowledged the meetings in a statement through Smith Entertainment Group, adding that the company has also met with other city residents over their concerns.

"We are grateful for their passion, input and leadership," he added, in part.

The Salt Lake City Council voted on Tuesday to approve a resolution authorizing Salt Lake City Mayor Erin Mendenhall to complete a partnership agreement with Smith Entertainment Group.

It allows Smith to seek up to $900 million in bonds that will be used to remodel the Delta Center so it can aptly serve as the home of the Utah Jazz and the newly acquired Utah Hockey Club, as well as some of the projects the company has in mind. The plan calls for a Salt Palace Convention Center remodel and other changes to the two blocks east of the arena.

City leaders also approved a 0.5% sales tax increase tied to the plan — set to be implemented in 2025 — that will be used to pay off the bonds over the next 30 years. The tax excludes groceries and large purchases, such as a vehicle.

In return, Smith Entertainment Group will implement a $1-3 fee per ticket beginning next season that will go toward a Salt Lake City fund to be used for affordable housing and projects within the district zones, among other benefits.

Anderson, who also ran for Salt Lake City mayor last year, had brought up the prospect of a referendum during a public hearing before both votes.

"If you can't say 'no' to this oppressive deal, then we the people will do it for you," he said in the meeting.

However, on top of meeting with Maughan, both Anderson and Lukes said Friday that there was "no certainty" that they would have been able to meet the requirements to put the City Council's vote onto a ballot. That's why they chose to back off from pursuing it.

Instead, they say residents should "continue to engage in the community" to ensure the project addresses every concern, from affordability to homelessness.

"We know many are disappointed that the issue of a new sales tax was never put to public vote. We share in that frustration," they said. "However, efforts to pursue a referendum will distract time, effort, energy, and resources from the important work of addressing essential issues facing our city, and undermine the opportunities for working together with (Smith) on matters of mutual passion and concern."

Maughan added he agrees the project should address homelessness and other key concerns that residents have brought up. He said the company is "committed to the ambitious goal" of "more sustainable homelessness solutions," coordinating its efforts with the state, county, city and groups.

Related:

Why Salt Lake County's part in Delta Center district plans may not be finalized this year

Salt Lake County's mayor says the county may not have a lease agreement for land next to the Delta Center until potentially next year.

Yet, despite Tuesday's votes, there are still plenty of details to be hammered out before major changes take place. Salt Lake City is still working out a development agreement and a lease extension for the Delta Center block with Smith Entertainment Group. The deal also hinges on a lease agreement with Salt Lake County for the blocks east of the arena.

Salt Lake County Mayor Jenny Wilson told KSL.com that she doesn't expect the county lease to be completed until there is some financial support from the state. That's why she doesn't expect anything to be finalized until after the next legislative session, which wraps up in March 2025.

However, she and downtown business leaders believe the project would enhance the downtown experience, drawing in more visitors beyond the times the Jazz and Hockey Club are playing.

"I think we all agree that leaning into a more complete reimagining of a Salt Palace is a benefit," Wilson said. "We're working right now to address the complexities around that rebuild and do it in a way that benefits the community as a whole."

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